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December 9, 2021

U.S. Storage Market Sets New Installation Record in Q3 2021

HOUSTON/WASHINGTON, D.C., 9 December 2021 – The U.S. energy storage market set a new record in the third quarter of 2021, with new system installations totalling 3,515 megawatt hours (MWh).

Wood Mackenzie, a Verisk business (Nasdaq: VSK), and the U.S. Energy Storage Association’s (ESA) latest U.S. Energy Storage Monitor report, released today, said with market momentum building, it is likely this storage market record will be broken in the fourth quarter.

In addition, an expected solar investment tax credit (ITC) extension, standalone storage ITC, and California solar and storage mandate are all assumed in the forecast for the first time this quarter, significantly increasing forecast storage deployment.

Jason Burwen, the interim chief executive of the U.S. Energy Storage Association said: “The Storage Decade has arrived.

“After achieving one gigawatt of annual installations for the first time last year, U.S. energy storage companies just installed one gigawatt of projects in one quarter.

“Storage has always been seen as a game-changing technology—and this quarter shows that the game of power system investment has officially changed.”

The third quarter saw the utility-scale front-of-the-meter (FTM) market deploy 998 MW/3198 MWh, with California, Texas and Arizona leading the segment.​

California continued to lead in FTM project deployment, with a trio of projects developed by NextEra Energy Resources near Blythe contributing the majority of the MW for the quarter. Storage projects in Texas developed by Broad Reach Power also boosted third quarter FTM capacity.​

Vanessa Witte, storage analyst at Wood Mackenzie, said: “Wood Mackenzie expects up to 4.7 GW of utility-scale storage to come into operation in 2021, which means this record-breaking quarter is only the beginning of a wave of major new projects set to come online this year and next.”

Installations increased slightly in the residential market as attachment rates continue to rise, with another 97.9MW/225 MWh of new residential storage brought online in the quarter​.

But project timelines for residential solar-plus-storage remain problematic, with solar module and battery constraints among the challenges contributing to project backlogs. However, vendors and installers managed to increase residential storage deployment over the second quarter.

The non-residential market recorded its best quarter of 2021 so far, with 43.6 MW/92.1MWh deployed.

Commercial virtual net metered and community solar projects with storage attached contributed most of the non-residential capacity in the third quarter, with most behind-the-meter non-residential projects sited in California.​

Burwen said: “The pace of energy storage installations will continue breaking records for years to come, particularly once Congress enacts an ITC for energy storage.

“Both distributed storage and large-scale storage will continue strong growth while decarbonizing our economy, increasing power system resilience, and creating jobs.”

 ENDS 

About the U.S. Energy Storage Monitor: 

Delivered quarterly, the U.S. Energy Storage Monitor is the industry’s only comprehensive research on energy storage markets, deployments, policies and financing in the U.S. These in-depth reports provide energy industry professionals, policymakers, government agencies and financiers with consistent, actionable insight into the burgeoning U.S. energy storage market. 

We report energy storage capacity data in three segments: residential, non-residential and front-of-the-meter. Projects that are deployed on the end-customer side of the meter (i.e. behind-the-meter) are reported as falling in either the residential or non-residential segment. The non-residential segment includes commercial, industrial, education, military, and non-profit deployments, but excludes uninterruptible power supply. Community solar-plus-storage projects are deemed “non-residential” to align with the Wood Mackenzie solar team’s methodology. Regardless of their size, projects that are deployed on the utility side of the meter (i.e. in front of the meter) are reported in the front-of-the-meter segment, with the exception of community solar-plus-storage. In some cases, we differentiate these as either “distribution domain” or “transmission domain” to clarify the point of interconnection. 

For further information, please contact Wood Mackenzie’s Media Relations team: 

Anthea Pitt  

+44 330 124 9436 
anthea.pitt@woodmac.com  

The Big Partnership

woodmac@bigpartnership.co.uk

 
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About Wood Mackenzie: 

Wood Mackenzie, a Verisk Analytics business, is a trusted source of commercial intelligence for the world’s natural resources sector. We empower clients to make better strategic decisions, providing objective analysis and advice on assets, companies and markets. For more information, visit: www.woodmac.com or follow us on Twitter @WoodMackenzie 

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About Verisk 

Verisk (Nasdaq:VRSK) provides predictive analytics and decision support solutions to customers in the insurance, energy and specialized markets, and financial services industries. More than 70 percent of the FORTUNE 100 relies on the company’s advanced technologies to manage risks, make better decisions and improve operating efficiency. The company’s analytic solutions address insurance underwriting and claims, fraud, regulatory compliance, natural resources, catastrophes, economic forecasting, geopolitical risks, as well as environmental, social and governance (ESG) matters. Celebrating its 50th anniversary, the company continues to make the world better, safer and stronger, and fosters an inclusive and diverse culture where all team members feel they belong. With more than 100 offices in nearly 35 countries, Verisk consistently earns certification by Great Place to Work. For more: Verisk.com, LinkedIn, Twitter, Facebook and YouTube

About The U.S. Energy Storage Association: 

The U.S. Energy Storage Association (ESA) is the national trade association dedicated to energy storage, working toward a more resilient, efficient, sustainable, and affordable electricity grid – as is uniquely enabled by energy storage. With more than 200 members, ESA represents a diverse group of companies, including independent power producers, electric utilities, energy service companies, financiers, insurers, law firms, installers, manufacturers, component suppliers and integrators involved in deploying energy storage systems around the globe. More information is available at: www.energystorage.org


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